Table 11 Shows the Hypothetical Trade-Off Between Different Combinations of Stealth

question 43

Multiple Choice

Table 1.1 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S.capacity, ceteris paribus.Complete the table by calculating the required opportunity costs for both the B-1 and Stealth bombers.
$\begin{array}{|c|c|c|c|c|}\hline \text { Combination } & \begin{array}{c}\text { Number } \\\text { of Stealth } \\\text { Bombers }\end{array} & \begin{array}{c}\text { Opportunity cost } \\\text { of Stealth } \\\text { Bombers in } \\\text { Terms of B-1s }\end{array} & \begin{array}{c}\text { Number } \\\text { of B-1s }\end{array} & \begin{array}{c}\text { Opportunity } \\\text { Terms of B-1s in } \\\text { Bombers }\end{array} \\\hline \mathrm{S} & 10 & & 0 & \\\hline \mathrm{T} & 9 & & 1 & \\\hline \mathrm{U} & 7 & & 2 & \\\hline \mathrm{V} & 4 & & 3 & \\\hline\end{array}$
Table 1.1
Production Possibilities for Bombers The highest opportunity cost anywhere in Table 1.1 for B-1 bombers in terms of Stealth bombers is

• A) 1 Stealth bomber per B
• B) 3 Stealth bombers per B
• C) 2 Stealth bombers per B
• D) 0.5 Stealth bomber per B

---

Definitions:

Lower Limit

The minimum value in a range of acceptable or possible values, often used in statistics and quality control.

Target Cash Balance

The ideal amount of cash that a company aims to maintain in order to manage daily financial operations and contingencies effectively.

Collection Float

The amount of time it takes for money from checks or other types of payments to be processed and available in the company’s account.

Disbursement Float

The interval between the issuance of a check and the actual deduction of the amount from the issuer's account.